Akastor Asa · OSL:AKAST
Akastor Asa — Investor Presentation (August 2020)
29 slides from Akastor Asa's investor presentation, August 2020
Slide 1: Investor Presentation
Akastor ASA Investor Presentation August 2020 Akastor © 2020 Akastor
Slide 2: Akastor at a glance
Akastor at a glance Listed investment Flexible mandate for Current portfolio of Conducted 14 company established in active ownership and industrial investments transactions which of 7 2014 with a portfolio of long-term value creation employs more than 2 300 was divestments with a industrial and fina
Slide 3: Track-record of divesting companies above book value in volatile O&G market
Akastor has a track-record of divesting most companies above book value in a volatile O&G market Advantage Crude Brent (USD/bbl) 12.5x 120 0.3x Book Transaction Book Transaction value value value value 100 Real Estate Portfolio 2.1x 1.5x 80 Book Transaction Book Transaction value value value value 6
Slide 4: Portfolio consists of both industrial and financial investments
Akastor portfolio consists of both industrial and financial investments Industrial investments Financial investments 100% 17% Leading global provider of first-class drilling systems, Global O&G manpower specialist products and services 50% USD 75m preferred equity International drilling, well servic
Slide 5: Our capital employed consist of mainly four investments
Our capital employed consist of mainly four investments Net Capital Employed as per 2Q 2020 (NOK million) Book value per share 12.6 4.3 3.0 2.1 (1.4) 20.5 (5.4) 15.1 586 (396) 814 (1 488) 1 178 5 626 4 137 3 443 Other Net Capital NIBD Equity (excl. Employed hedge reserve) Akastor © 2020 Akastor Slid
Slide 6: Key value drivers for our main portfolio assets
Key value drivers for our main portfolio assets NCE per 2Q 2020: NOK 3 443m NCE per 2Q 2020: NOK 1 178m NCE per 2Q 2020: NOK 814m NCE per 2Q 2020: NOK 586m 61% 21% 14% 10% Ownership agenda: Ownership agenda: Ownership agenda: Ownership agenda: ▪ Buy-and-build strategy with ▪ Secure order backlog and
Slide 7: Global leader of integrated drilling solutions and services
Global leader of integrated drilling solutions and services MHWirth at a glance Key offering Strong HQ in ~1,600 engineering Kristiansand employees capabilities (Norway) with 40+yrs experience Drilling Rig Drilling Digital Engineering Drilling DLS Facilities in In-house Packages Equipment Technology
Slide 8: MHWirth managed to successfully navigate through the down cycle
MHWirth managed to successfully navigate through the down cycle MHWirth revenue vs EBITDA 2004-2019 (NOKbn) 12 Revenue (NOK bn) 1.3 1.2 11 EBITDA (NOK bn, right axis) 1.2 1.1 10 1.1 1.0 1.0 9 1.0 0.9 0.9 8 0.8 0.8 7 0.7 6 0.6 0.6 5 0.5 10.3 10.4 0.5 9.0 0.5 8.7 8.4 4 7.9 7.6 0.4 7.0 6.6 0.3 3 0.3 0.
Slide 9: Well established after market sales with recurring service revenue
Well established after market sales with recurring service revenue Young installed base of full package rigs… …with substantial recurring lifecycle services Revenue potential throughout a drilling floater’s lifetime Full package (rigs) Installed base by age 0-5 Fixed >20 18 14 21 83 83 Start-up 11 5
Slide 10: Digital solutions and automation drives demand for MHWirth
Digital solutions and automation drives demand for MHWirth’s Products and Services Environmental Enhanced Drilling Efficiency Improved cost footprint Drillfloor Performance Digitalization of Maintenance Product Drilling Automation Greener Drilling Automation Optimization drilling dataflow Optimizati
Slide 11: Highly experienced management team with growth ambitions
Highly experienced management team with growth ambitions Hired new management team in 2019… …to deliver on MHWirth new ambitious growth plan Mr Miller has more than 40 years of experience from the oil service industry. He is currently, among others, chairman of Ranger Energy Services and board Compl
Slide 12: MHWirth has a robust business model with upside potential
MHWirth has a robust business model with upside potential Leading drilling equipment provider that has successfully navigated through 1 the down cycle 2 Large installed base generating recurring service revenue Need for efficiency gains and automation driving demand for MHWirth’s 3 Products and Serv
Slide 13: International offshore energy services company, subsea well construction and intervention
International offshore energy services company, with focus on subsea well construction and well intervention services AKOFS Offshore at a glance Fleet overview Vessels Loc. 2019 2020 2021 2022 2023 2024 2025 • AKOFS Offshore is a global provider of vessel-based subsea well construction and intervent
Slide 14: ODL preferred equity instruments yields 10% annually
ODL preferred equity instruments yields 10% annually with further upside potential from warrant structure Preferred equity structure Warrant structure Instrument description: Instrument description: ▪ 5% cash dividend + 5% PIK per annum (semi-annual payment) ▪ The total warrant issue comprise six tr
Slide 15: Global provider of specialty workforce management solutions
Global provider of specialty workforce management solutions NES at a glance Network of ~50 global offices • Global award winning workforce solutions specialist that provides Global organization professionals across the Oil & Gas, Power, Construction & with local client Infrastructure, Life Sciences,
Slide 16: Key investment highlights
Key investment highlights Portfolio companies with leading positions, well positioned for 1 recovery of the oil service market Value creation through active ownership and solid industrial know- 2 how, combining a range of strategic, operational and financial measures Experienced team with proven tra
Slide 17: Appendix
Appendix Akastor © 2020 | 2020 Akastor Slide 17
Slide 18: Setting the ESG agenda through active, responsible ownership
Setting the ESG agenda through active, responsible ownership Akastor works to ensure that its portfolio companies implement 1 strategies to reduce adverse impact on the environment caused by 1 their products or operations 3 Akastor ensure that portfolio companies focus on having a 2 competent, diver
Slide 19: Our portfolio companies ESG commitments
Our portfolio companies ESG commitments Leading drilling equipment that increases efficiency and reduces carbon footprint in drilling operations AKOFS seafarer vessel upgraded with battery package to reduce carbon footprint in well intervention operations AGR is working on the first carbon storage w
Slide 20: Transactions track-record since inception in 2014
Transactions track-record since inception in 2014 June 2019 April 2019 September 2018 April 2018 October 2018 Merged for an economic 100% acquisition of 50% sale to interest stake of 55% Preferred equity ~6% share purchase investment USD 31.5m USD 142.5m USD 75m1) USD 10m November 2017 June 2017 Mar
Slide 21: AGR at a glance
AGR at a glance Key offering HQ in Oslo, ~350 Norway employees Well Reservoir Software and Consulting Management Management other services Global reach More than 530 with offering well projects World largest Independent Recruitment and Proprietary in- consultancy house developed through offices span
Slide 22: Cool Sorption at a glance
Cool Sorption at a glance Customer base comprising well known oil majors • Cool Sorption is engaged in the design and engineering of Vapour Recovery Units (VRUs) and offers a range of pre-designed systems covering a full compliment of capacities • More than 35 years of experience and a record coveri
Slide 23: Key figures
Key figures AKASTOR GROUP NOK million 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 YTD 2020 Revenue and other income 1 304 1 430 1 557 1 424 1 254 2 677 EBITDA 114 133 153 137 70 208 EBIT 27 76 88 71 2 73 CAPEX and R&D capitalization 23 22 66 19 17 36 NCOA 875 1 010 611 1 135 1 114 1 114 Net capital employed 5 234
Slide 24: Split per Company (1 of 4) - MHWirth
Split per Company (1 of 4) MHWIRTH NOK million 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 YTD 2020 Revenue and other income 1 088 1 173 1 219 1 154 1 052 2 206 EBITDA 121 136 148 136 110 245 EBIT 57 93 98 82 53 135 CAPEX and R&D capitalization 21 20 64 16 14 30 NCOA 1 216 1 141 736 1 268 1 275 1 275 Net capital
Slide 25: Split per Company (2 of 4) - AKOFS Offshore
Split per Company (2 of 4) AKOFS OFFSHORE 1) NOK million 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 YTD 2020 Revenue and other income 234 295 306 304 201 505 EBITDA 104 175 145 175 83 259 EBIT 24 94 64 94 1 96 CAPEX and R&D capitalization 110 130 234 71 90 162 NCOA 138 104 49 205 166 166 Net capital employed 3 5
Slide 26: Split per Company (3 of 4) - AGR
Split per Company (3 of 4) AGR NOK million 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 YTD 2020 Revenue and other income 156 167 221 217 157 374 EBITDA (1) 1 12 17 5 23 EBIT (7) (4) 7 13 1 15 CAPEX and R&D capitalization 2 2 2 2 2 5 NCOA - 10 12 9 (7) (7) Net capital employed 153 161 170 171 152 152 Order intake
Slide 27: Split per Company (4 of 4) - Other Holdings
Split per Company (4 of 4) OTHER HOLDINGS NOK million 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 YTD 2020 Revenue and other income 68 100 96 53 47 100 EBITDA (6) (5) (7) (16) (45) (60) EBIT (24) (13) (17) (24) (53) (77) CAPEX and R&D capitalization - - - - - 1 NCOA (342) (142) (137) (142) (154) (154) Net capital
Slide 28: Copyright and disclaimer
Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Akastor and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor u
Slide 29: Akastor ASA contact details
AKASTOR ASA Oksenøyveien 10, NO-1366 Lysaker, Norway P.O. Box 124, NO-1325 Lysaker, Norway +47 21 52 58 00 www.akastor.com Akastor © 2020 Akastor